Brazil has discarded a long -standing tax exemption in cryptocurrency profits, with a new provisional measure (MP 1303), which imposed a 17.5% tax on all cryptographic profits for people.
Previously, people who sold up to R $ 35,000 (around $ 6,300) in cryptography per month were tax exempt. Before the change, the previous profits were gradually taxed, reaching up to 22.5% for volumes greater than $ 5.4 million.
The new rule replaces this system with a flat tax, which means that smaller investors will face a higher tax burden, while large holders can see their shrinking bills, the local media portal makes Bitcoin reports.
The tax will be applied regardless of where the assets are maintained, including exchanges abroad or self -odial wallets. Losses can be compensated, but only within a five -quarter rolling window, a rule that will become stricter from 2026.
The Government says that the review aims to boost tax revenues after returning a proposed increase to the IF Financial Transaction Tax, which had generated industrial and Congress criticism.
Together with Crypto, the new measure affects fixed income investments and online bets, and the first now incurs a 5% fixed tax on profits and the second seeing that operator income taxes increase from 12% to 18%.
